Industry Minister: Industrial Development Depends on Effective Spatial Planning

JAKARTA – The Industry Ministry (Kementerian Perindustrian/Kemenperin) is encouraging all regional areas to prepare City and/or District Industrial Development Plans (RPIK) to help foster the development of their areas, according to the relevant needs.

This call is written in a 2014 law on Industries, which states that all districts and cities must write up proper RPIKs that mainly focus on spatial planning (RTRW) schemes that promote social and economic harmony and diversity, as well as environmental support.

According to Industry Minister Agus Gumiwang Kartasasmita, RPIKs must outline a region’s industrial development plans for the next 20 years, while also assessing possibilities for an industrial zone to be established in the area.

“Any economic and industrial development plans must also be in tune with sustainable environmental management,” Minister Agus said through a written statement on Wednesday (2/23).

Therefore, industrial zones must be built with relevant supporting facilities and infrastructure to achieve this goal, and it must also be run by the zone’s tenants. Also, the construction of industrial zones must be done with development in mind.

“Industrial zones must also encourage environmentally sustainable development, improve investment and industry competitiveness and provide benefits for the people in the area,” the Minister said.

Minister Agus added that Kemenperin Law no. 30/2020 on Technical Criteria for Industrial Zones has already been issued by the government, containing guidelines for the central and regional governments to help determine which areas are fit for industrial zone construction according to their respective spatial planning requirements.

“Industrial zones are areas that can be used for industrial activity. They must not disrupt the environmental ecosystem of the area and must preserve productive land,” the minister explained.

Industrial zones must also not be built on farming land or in protected areas.

“The Kemenperin has appealed to regional governments to formulate industrial development policies, including those on industrial zone development and the development of the surrounding areas, according to official provisions, whether in terms of policy planning or the issuance of permits,” he said. 

The ministry will continue to coordinate and facilitate all parties related to synergizing sustainable industrial development policies by providing assistance and input related to sustainable development to assist a district or city’s spatial planning efforts.